Narrowing It Down

Advisors usually preach the benefits of diversifying investments to their clients. When it comes to building their own practices, though, many planners choose to work with clients in a particular profession or workers with a single employer.

Some industry-specific practices have benefited from planners' ties to former employers or proximity to large institutions. Planners who build such a client base say the employer-specific or industry-specific knowledge builds trust and a loyal following, ensuring continued referrals.